Whether you’re an in-house marketer or working at an agency, effective bid management is crucial for scaling success.
However, understanding how to optimize and adjust bids effectively in Google Shopping ads can be challenging, especially with all the different settings and levers that can be pulled!
Google Shopping has come a long way since its original inception in 2022 – and up until 2012, Google Shopping was free!
It seems that every year, more is needed to win the bidding war against rising costs in the Google Ads platform and keep brands’ profitability in check.
In this article, we’ll explore the strategies, tools, and best practices that can help you win the bidding war and maximize ROI on your Google Shopping campaigns.
1. Understanding The Google Shopping Auction Model And Its Impact On Bidding
Before we jump into bid management strategies, it’s essential to understand how Google Shopping works behind the scenes. Unlike Search campaigns, Google Shopping doesn’t rely on keywords to trigger ads.
Instead, product listing ads (PLAs) appear based on a combination of your product feed data and the user’s search intent. Google uses a unique auction system, and your bids interact with factors like relevance, user behavior, and other competitors in the space.
The Role Of Quality Score In Google Shopping
Quality Score plays a role in Google Shopping bid management, but a bit differently from Search campaigns.
Factors such as the product feed quality, landing page relevance, and historical campaign performance can influence how often your ads appear and at what cost. Here’s how to ensure you’re optimizing for Quality Score in Shopping:
Product Feed Optimization: Ensure that your product titles, descriptions, and attributes are clear and relevant.
Accurate Categorization: Place your products in the most appropriate categories for better relevance.
Optimized Landing Page: Make sure the page that users land on after clicking the ad is optimized for a better user experience, and don’t forget about mobile!
How Bid Amount Affects Visibility
Higher bids don’t always guarantee visibility, and low bids don’t always exclude you from auctions.
It’s a balance of ensuring your product feed is optimized while bidding strategically based on the product’s potential to convert.
Bidding strategies should reflect the actual performance of your products and overall business goals related to those campaigns.
2. Craft A Strategic Bidding Approach
One of the first decisions you need to make when managing Google Shopping bids is whether to rely on manual or automated bidding.
Both approaches have advantages depending on your business objectives, campaign budget, and the scale of your operations.
Manual Bidding: This gives you more control, allowing you to adjust bids based on performance. For example, if you notice that certain products are underperforming, you can reduce their bids to allocate budget to higher-performing products.
Automated Bidding: Automated strategies like Maximize Conversion Value or Target ROAS (Return on Ad Spend) use machine learning to adjust your bids dynamically based on real-time auction signals. These can be ideal for large product catalogs or when performance data is inconsistent across different products.
Google has added more automated bidding strategies over the years, making it easier to effectively bid based on your business goals.
However, the added complexity of choosing Standard Shopping campaigns versus the newer Performance Max campaign type allows for different bid strategies.
If choosing Standard Shopping campaigns, you have the option of these two automated bid strategies:
Maximize Clicks: Helps you get as many clicks as possible within your target daily budget.
Target ROAS: Helps you maximize conversion value while reaching an average return on ad spend that you choose.
Screenshot from author, August 2024
If you choose to set up a Performance Max campaign with your product feed linked, you have the option of more bid strategies:
Maximize Conversions: Helps generate the most amount of conversions within your daily budget, regardless of conversion value.
Maximize Conversion Value: Helps generate the highest conversion value within your daily budget.
Additionally, Performance Max campaigns have the optional “Target ROAS” input to yield a little bit more control over your campaign bid strategy.
Lastly, you now have the option to choose how to bid for acquiring new customers – a very welcome addition to further maximize those ad dollars!
In Google Ads, you can choose to either bid higher for new customers than existing customers. Or, you can bid for new customers only.
Screenshot from author, August 2024
For Google Shopping campaigns specifically, you may want to choose to bid higher for new customers instead of excluding them altogether, especially if your brand is used to having repeat customers.
This essentially means you’re willing to pay more to get a new customer, knowing they will likely purchase again in the future, leading to incremental revenue.
For higher-ticket items that users may only purchase once every few years, it may be worthwhile to choose ‘bid for new customers only’.
At the end of the day, make sure to choose the customer acquisition strategy that aligns with your business goals.
Segmentation And Granularity In Bidding
A key component to effective bid management is to segment your campaigns and ad groups properly. This allows for more granular control over bids and enables better performance optimization.
Product-Level Bidding: Rather than bidding at the campaign or ad group level, product-level bidding allows you to adjust bids based on each product’s unique performance metrics. Products that generate more conversions or revenue should receive higher bids, while underperforming products can have bids scaled back.
Segment by Profit Margin or Price Point: Grouping products based on their profit margins or price points can help you adjust bids based on the product’s value to your business. High-margin products may justify higher bids since they offer better ROI.
Seasonality and Time Sensitivity: Adjust bids based on trends in user behavior throughout the year. For instance, products may perform better during certain seasons or promotional events, requiring temporary bid increases.
3. Use Your Own Data & KPIs To Inform Your Bid Management
Knowing which metrics to monitor is critical for making informed bidding decisions. Below are the core KPIs to watch closely:
Cost Per Conversion (or CPA) and Return On Ad Spend (ROAS): These two metrics provide insights into your campaign’s efficiency. You want to identify which products or campaigns have the highest ROAS and optimize bidding for those.
Impression Share and Click-Through Rate (CTR): These metrics can give you a sense of how your bids are affecting visibility. If you’re seeing low impression shares on profitable products, it may be time to increase your bids.
Conversion Rate: Analyze conversion rates to identify which products are most likely to turn clicks into sales, then adjust your bids accordingly.
Lifetime Value (LTV) and Customer Acquisition Costs (CAC): If your business has repeat purchases, focusing on lifetime value can give you an advantage when bidding on products that may have lower immediate returns but higher long-term value.
Knowing these KPIs for your business can help shape your bid management strategy and make strategic changes based on your Google Shopping performance in comparison to your business’s set KPIs.
For example, if you have an average conversion rate of 4% as a whole, but your Google Shopping campaigns are only providing a 2% conversion rate, that may tell you something needs to be optimized.
You may need to take a look at the keywords your products are showing up for and do some negative keyword management. Additionally, maybe your ads aren’t reaching the right users and you need to further refine audience targeting within your campaigns.
Another example of using your own data is knowing your profit margin for products. If you have a subset of products that have a high-profit margin, you can add a custom label into your product feed that denotes those products.
From there, you can segment your campaigns to have a higher priority on those particular products or choose to bid higher on them because they’re worth more to you and your business.
Leveraging Bid Simulators And Other Tools
Google also provides several tools that can help inform your bid decisions:
Bid Simulators: These help you understand how different bid levels would impact your impression share, clicks, and conversions. You can use this data to adjust your bids in a way that maximizes your return without overspending.
Custom Labels: By using custom labels in your product feed, you can segment your products by performance, seasonality, or promotion. This way, you can quickly adjust bids based on these factors.
Scripts and Third-Party Tools: Tools like Optmyzr or custom Google Ads scripts can automate bid adjustments based on performance data, allowing you to focus on strategy rather than manual labor.
4. Optimize Your Bid Management For Long-Term Success
Bid management is not a “set it and forget it” exercise. Continual testing, analyzing, and adjusting are necessary to maintain and improve campaign performance over time.
Bid management should also not be used for daily volatile changes at the campaign level.
If you’re micromanaging performance each day and changing bid strategies too often, you may end up with sub-optimal performance because you’re not giving Google enough time to learn and optimize based on performance.
It’s about finding a healthy balance between “set and forget” and “over-optimizing”. Going back to point #3, knowing the values of your core business metrics and goals makes it easier to react to performance swings and know when to take action.
Some ways to optimize for long-term success include:
A/B Testing on Bids: Running A/B tests on bid adjustments allows you to assess the impact of bid changes without risking your entire budget. Test different bidding strategies on subsets of your campaigns or products to see what delivers the best performance.
Seasonal Adjustments: Stay ahead of trends by adjusting your bids before key periods like Black Friday or holiday shopping spikes. Predictive adjustments can help you capture market share before your competitors ramp up.
Monitor Competitor Behavior: Keep an eye on your competition. If you notice that competitors are aggressively bidding on certain products, you may need to adjust your strategy to compete, either by raising bids or adjusting product listings.
Prepare For Future Changes In Google Ads
Google Shopping is constantly evolving, and as machine learning models become more sophisticated, the way bids are managed will continue to change.
Staying informed about new features, tools, and best practices will help you maintain a competitive edge. Subscribe to updates, attend industry events, and engage with the community to keep your knowledge fresh.
Summary
Google Shopping bid management requires a balance between data-driven strategies, an understanding of the auction system, and a willingness to experiment and adapt.
By leveraging the tips and strategies discussed in this article, you’ll be better equipped to navigate the complexities of Google Shopping and drive profitable growth for your brand or clients.
Keep refining your approach, test new strategies, and stay on top of Google Shopping developments to stay competitive and ahead of the bid war.
Since its launch in 2021, Google’s Performance Max (PMax) campaigns have revolutionized how we approach cross-channel advertising.
But while this AI-powered campaign has been a game-changer for many, particularly in ecommerce, its application for lead generation comes with unique challenges and opportunities.
I thought this would be a good time to share advanced strategies for leveraging PMax in lead generation campaigns. We’ll also identify common pitfalls and reveal how to maximize your results.
The Lead Gen Challenge: Quality Over Quantity
Unlike ecommerce, where a purchase marks a clear end to the customer journey, lead generation is just the beginning.
This fundamental difference creates a significant hurdle for PMax campaigns, presenting unique challenges that require advanced strategies.
Menachem Ani, founder of JXT Group, explains the core issue:
“Unlike e-commerce, where a purchase signifies the ‘end’ of the transaction, lead creation is the beginning of the sales process—and just because someone fills out a form doesn’t make them a quality lead.”
The challenge lies in teaching Google’s algorithm to distinguish between high-quality and low-quality leads.
Without this crucial information, PMax campaigns can fall into what some marketers call the “feedback loop of doom” – optimizing for quantity over quality and potentially flooding your pipeline with unqualified leads.
Image from author, September 2024
Another critical factor in determining whether PMax suits your lead generation efforts is Google’s understanding of your business and website.
PMax heavily relies on your website content when targeting users. If Google misinterprets your service offerings, your campaigns are likely to underperform.
To assess Google’s comprehension of your business, try this simple test: Input your website URL into the Search Terms section of Google’s Keyword Planner.
Review the generated keywords and evaluate their relevance to your services. This exercise can provide valuable insights into how well Google understands your business, which is crucial for PMax’s success in lead generation campaigns.
Cracking The Code: Strategies For Success
1. Harness The Power Of Offline Conversion Tracking (OCT)
The key to success with PMax for lead generation lies in feeding Google’s algorithm with quality data. This means implementing robust OCT.
“To make Performance Max for lead generation work, it is vital to instruct Google on the outcome. If you don’t, it will seek to bring in as many submissions as possible – regardless of the quality.”
Import offline conversion data, either manually or automatically.
Define what a qualified lead is for your business and make the form difficult to complete.*
Set qualified leads as your primary conversion point.
* You can do this by adding several qualifying questions, setting up confirmation pages for qualified leads versus unqualified leads, and only counting the qualified leads.
2. Leverage Cross-Campaign Optimization
Use data from successful campaigns across other channels to inform your PMax strategy. This is especially useful when dealing with limited data in new PMax campaigns.
Practical tips:
Incorporate broader themes and topics related to your products or services as asset signals rather than specific keywords. For example, if you sell home renovation products, use signals like “home improvement,” “interior design,” or “home renovations” instead of specific product keywords.
Note: It’s important to understand that PMax uses these signals differently than traditional keyword targeting. The goal is to help Google understand your potential customers’ broader context and interests, not to target specific search terms.
Collaborate with your sales and marketing teams to incorporate insights from persona studies and campaign success stories
3. Rethink Your Campaign Structure
It’s vital to understand PMax’s strengths and limitations. Performance Max excels at capturing existing demand but struggles with generating new demand.
To leverage this characteristic effectively, consider implementing an advanced tactic:
Run a PMax campaign alongside a separate Search campaign that targets high-quality, intent-driven search keywords. This approach allows you to:
Use traditional Search campaigns to capture high-intent traffic based on specific keywords.
Let PMax excel at what it does best: Remarketing to this high-quality traffic and working on converting them.
Action steps:
Identify your highest-performing, intent-driven keywords from historical data.
Create a focused Search campaign using these keywords.
Set up a complementary PMax campaign.
Ensure your audience settings allow PMax to remarket to users interacting with your Search ads.
Monitor both campaigns closely, adjusting budget allocation based on performance.
This strategy lets you maintain control over your highest-value search terms while leveraging PMax’s optimization and remarketing capabilities. It creates precise targeting of traditional Search and the broad reach and AI-driven optimization of PMax.
Remember, viewing these campaigns as complementary rather than competitive is key. Doing so can create a more comprehensive and effective lead generation strategy that captures high-intent traffic and then nurtures it effectively toward conversion.
4. Harness The Power Of First-Party Data
Your first-party data is gold for PMax campaigns. It provides Google with clear signals about who is genuinely interested in your products or services.
Steps to implement:
Add high-value customer lists from your CRM.
Utilize existing remarketing lists.
If compliant with privacy regulations, import contacts who have engaged with your email campaigns.
5. Strategic Exclusions
While PMax limits our control compared to traditional search campaigns, we can still guide the algorithm by telling it where not to show our ads.
Tactics to consider:
Exclude poor-performing keywords and placements at the account level.
Use Google’s Insights reports to identify and exclude irrelevant search terms and placements.
Pitfalls To Avoid
1. Neglecting Lead Scoring
Not all leads are created equal. Implement a lead scoring system in your CRM and feed this data back to Google. This allows the algorithm to optimize for lead quality, not just quantity.
2. Ignoring The Full Funnel
Remember that lead generation is just the start. Track and optimize for downstream metrics like qualified leads, meetings set, and eventual sales.
3. Over-Reliance On Automation
While PMax is highly automated, it still requires human oversight and strategic input. Review performance regularly, adjust audience signals, and refine your creative assets.
4. Neglecting Creative Assets
PMax relies heavily on your creative input. Ensure you provide a diverse range of high-quality assets, including compelling ad copy, eye-catching images, and engaging videos.
5. Leverage Negative Keywords And URL Controls
While Performance Max limits traditional keyword targeting, Google now allows advertisers to use negative keyword lists in these campaigns.
This feature is crucial for lead generation efforts, serving two essential purposes:
Brand Protection: Create a list of your branded keywords and exclude them in PMax. As Brooke Osmundson explains, “At the very minimum, create a list of targeted brand keywords and exclude them in PMax. This allows your tried-and-true search campaign to run and optimize per usual, without PMax cannibalizing any existing efforts”.
Competitor Exclusion: You can also exclude competitor brand terms if you believe Google might show your ads for these searches inappropriately.
Additionally, pay close attention to URL settings. Consider disabling URL Expansion in your PMax settings, as this will help you retain control over what landing pages are used. For lead generation, sending users to the right landing page is crucial for lead quality.
If you choose to keep URL Expansion enabled, be sure to exclude irrelevant pages like blogs, recruitment pages, or ‘About’ sections to maintain control over the user journey.
These controls allow you to shape your PMax campaign more precisely, ensuring it complements your existing strategies and maintains the quality of your lead generation efforts.
6. Overlooking Placement And Asset Control
Reviewing the display placements and excluding irrelevant websites from showing your ads is essential. Typically, gaming sites and kids’ apps are the first things you want to exclude.
Also, be wary of Google’s automatically created assets. At my PPC agency, Hop Skip Media, we’ve seen instances where Google automatically creates YouTube videos of inferior quality. Make sure you turn those off and review assets regularly.
7. Misunderstanding Google’s Comprehension Of Your Business
Before fully committing to PMax for lead generation, assess whether Google accurately understands your business and website content.
You can do this by inputting your website URL into the Search Terms section of the Keyword Planner and evaluating the relevance of the generated keywords.
If there’s a significant mismatch, PMax may need help to target the right audience for your lead generation efforts.
8. Neglecting To Define And Track Quality Leads
Make your lead generation forms more discriminating by including qualifying questions.
Set up separate confirmation pages for qualified and unqualified leads, and only count qualified leads when firing your conversion pixel. This approach helps ensure that PMax optimizes for quality leads rather than just quantity.
By avoiding these pitfalls and implementing the strategies we’ve discussed, you can significantly improve the effectiveness of your Performance Max campaigns for lead generation.
Remember, the key is continually providing Google’s algorithm with high-quality data and maintaining strategic oversight of your campaigns.
The Future Of PMax For Lead Gen
Like anything in Google Ads, Performance Max for lead generation is not a set-it-and-forget-it solution. It requires a strategic approach, continuous optimization, and a deep understanding of your lead qualification process.
By implementing offline conversion tracking, leveraging first-party data, structuring campaigns thoughtfully, and avoiding common pitfalls, you can harness the power of Google’s AI to generate more leads and better leads.
As Google continues to refine and improve Performance Max, we can expect even more sophisticated targeting and optimization capabilities.
The marketers who will succeed are those who stay ahead of the curve, continuously testing, learning, and adapting their strategies.
Remember, the goal isn’t just to fill your funnel – it’s to fill it with suitable leads. With these advanced strategies, you’re well-equipped to make Performance Max a powerful tool in your lead generation arsenal.
Google has announced a new technology called “confidential matching” to enhance data privacy for advertisers.
Confidential matching, which uses confidential computing technology, allows businesses to use their first-party data for advertising while maintaining stricter privacy controls.
The system employs Trusted Execution Environments (TEEs), a combination of hardware and software that isolates data during processing.
According to Google, this technology prevents external access to the processed data, including by Google itself.
The announcement comes as the tech industry faces increasing scrutiny over data handling and privacy concerns.
Key Features
The new system offers several features that Google claims will enhance data security:
Default security protections for customer information
Increased transparency into product code
Attestation mechanisms to verify data processing
Implementation & Availability
Confidential matching is now the default for Customer Match data connections, including those made through Google Ads Data Manager.
Google plans to expand this technology to other advertising solutions in the coming months.
This technology is available at no additional cost to advertisers. This move could give Google a competitive edge in digital advertising, where privacy concerns have become increasingly important.
Industry Reactions & Concerns
While Google frames this as a positive step towards better data protection, there is potential for Google to consolidate its dominance in the digital advertising space further.
Anthony Katsur, CEO of IAB Tech Lab, expressed support for the initiative, stating that it shows “continued momentum in adopting PET-powered solutions.”
However, it would help to have more transparency regarding how the technology works and its effectiveness in protecting user data.
Broader Privacy Landscape
This development comes amid a shifting landscape in digital privacy, with increasing regulatory scrutiny and growing consumer awareness of data protection issues.
Other major tech companies have introduced privacy-focused initiatives, reflecting a broader industry trend.
The long-term impact of technologies like confidential matching on user privacy and advertising effectiveness is unknown.
Industry folks will be closely monitoring how this technology is implemented and its effects on the digital advertising landscape.
Google has announced plans to discontinue its Enhanced Cost-Per-Click (eCPC) bidding strategy for search and display ad campaigns.
This change, set to roll out in stages over the coming months, marks the end of an era for one of Google’s earliest smart bidding options.
Dates & Changes
Starting October 2024, new search and display ad campaigns will no longer be able to select Enhanced CPC as a bidding strategy.
However, existing eCPC campaigns will continue to function normally until March 2025.
From March 2025, all remaining search and display ad campaigns using Enhanced CPC will be automatically migrated to manual CPC bidding.
Advertisers who prefer not to change their campaigns before this date will see their bidding strategy default to manual CPC.
Impact On Display Campaigns
No immediate action is required for advertisers running display campaigns with the Maximize Clicks strategy and Enhanced CPC enabled.
These campaigns will automatically transition to the Maximize Clicks bidding strategy in March 2025.
Rationale Behind The Change
Google introduced Enhanced CPC over a decade ago as its first Smart Bidding strategy. The company has since developed more advanced machine learning-driven bidding options, such as Maximize Conversions with an optional target CPA and Maximize Conversion Value with an optional target ROAS.
In an email to affected advertisers, Google stated:
“These strategies have the potential to deliver comparable or superior outcomes. As we transition to these improved strategies, search and display ads campaigns will phase out Enhanced CPC.”
What This Means for Advertisers
This update signals Google’s continued push towards more sophisticated, AI-driven bidding strategies.
In the coming months, advertisers currently relying on Enhanced CPC will need to evaluate their options and potentially adapt their campaign management approaches.
While the change may require some initial adjustments, it also allows advertisers to explore and leverage Google’s more advanced bidding strategies, potentially improving campaign performance and efficiency.
FAQ
What change is Google implementing for Enhanced CPC bidding?
Google will discontinue the Enhanced Cost-Per-Click (eCPC) bidding strategy for search and display ad campaigns.
New search and display ad campaigns can’t select eCPC starting October 2024.
Existing campaigns will function with eCPC until March 2025.
From March 2025, remaining eCPC campaigns will switch to manual CPC bidding.
How will this update impact existing campaigns using Enhanced CPC?
Campaigns using Enhanced CPC will continue as usual until March 2025. After that:
Search and display ad campaigns employing eCPC will automatically migrate to manual CPC bidding.
Display campaigns with Maximize Clicks and eCPC enabled will transition to the Maximize Clicks strategy in March 2025.
What are the recommended alternatives to Enhanced CPC?
Google suggests using its more advanced, AI-driven bidding strategies:
Maximize Conversions – Can include an optional target CPA (Cost Per Acquisition).
Maximize Conversion Value – Can include an optional target ROAS (Return on Ad Spend).
These strategies are expected to deliver comparable or superior outcomes compared to Enhanced CPC.
What should advertisers do in preparation for this change?
Advertisers need to evaluate their current reliance on Enhanced CPC and explore alternatives:
Assess how newer AI-driven bidding strategies can be integrated into their campaigns.
Consider transitioning some campaigns earlier to adapt to the new strategies gradually.
Leverage tools and resources provided by Google to maximize performance and efficiency.
This proactive approach will help manage changes smoothly and explore potential performance improvements.
Cybersecurity researchers are warning people over a troubling rise in “malvertising”—the use of online ads to deploy malware, phishing scams, and other attacks.
A report from Malwarebytes found that malvertising incidents in the U.S. surged 42% last fall.
The prime target? Unsuspecting users conducting searches on Google.
Jérôme Segura, senior director of research at Malwarebytes, warns:
“What I’m seeing is just the tip of the iceberg. Hackers are getting smarter and the ads are often so realistic that it’s easy to be duped.”
Poisoned Paid Promotions
The schemes frequently involve cybercriminals purchasing legitimate-looking sponsored ad listings that appear at the top of Google search results.
Clicking these can lead to drive-by malware downloads or credential phishing pages spoofing major brands like Lowe’s and Slack.
Segura explained of one recent Lowe’s employee portal phishing attack:
“You see the brand, even the official logo, and for you it’s enough to think it’s real.”
Undermining User Trust
Part of what makes these malvertising attacks so volatile is they hijack and undermine user trust in Google as an authoritative search source.
Stuart Madnick, an information technology professor at MIT, notes:
“You see something appearing on a Google search, you kind of assume it is something valid.”
The threats don’t end with poisoned promotions, either. Malicious ads can also sneak through on trusted websites.
Protecting Against Malvertising: For Users
Experts advise several precautions to reduce malvertising risk, including:
Carefully vet search ads before taking any actions
Keeping device operating systems and browsers updated
Using ad-blocking browser extensions
Reporting suspicious ads to Google for investigation
Madnick cautioned:
“You should assume that this could happen to you no matter how careful you are.”
Staying vigilant against malvertising exploits will become more critical as cyber attackers evolve their deceptive tactics.
Protecting Against Malvertising: For Websites
While individual users must stay vigilant, websites are also responsible for implementing safeguards to prevent malicious ads from being displayed on their platforms.
Some best practices include:
Ad Verification Services
Many websites rely on third-party ad verification services and malware scanning tools to monitor the ads being served and block those identified as malicious before reaching end users.
Whitelisting Ad Sources
Rather than accepting ads through open real-time bidding advertising exchanges, websites can whitelist only thoroughly vetted and trusted ad networks and sources.
Review Process
For an added layer of protection, websites can implement a human review process on top of automated malware scanning to manually analyze ads before serving them to visitors.
Continuous Monitoring
Malvertisers constantly update their techniques, so websites must monitor their ad traffic data for anomalies or suspicious patterns that could indicate a malicious campaign.
By implementing multi-layered ad security measures, websites can avoid unknowingly participating in malvertising schemes that put their visitors at risk while protecting their brand reputation.
This morning, The Outlook Study: August Update has been released by the IAB as an update to their initial November 2023 study and provides a snapshot of projected ad spend, opportunities, and challenges for the remainder of 2024.
The study outlines the shifts that have occurred throughout the year, capturing current perspectives from buy-side ad investment decision-makers at brands and agencies.
Here are some of the key takeaways for digital marketers:
Buyers increased their 2024 ad spend projections from +9.5% projected at the end of 2023 to +11.8% today.
Nearly all channels are expected to post higher growth rates year-over-year (YoY), with even Linear TV rebounding.
Retail media’s ascent continues, with buyers revising YoY projections from +21.8% to +25.1%.
Buyers continue to focus on cross-funnel KPIs while shifting efforts towards reach optimization as interest in new KPIs wanes.
Measurement challenges persist for the industry, while economic concerns subside.
In other words, it’s time to spring forward, not fall back, in the media and marketing industries.
Buyers’ Ad Spending Forecasts For 2024 Have Been Revised Upward
The increase in projections is not what many digital marketers were expecting, so what is happening in the changing industry landscape?
Increased ad spending in the second half of 2024 is being driven by increased political spending around the presidential election and other cyclical events, such as the Summer Olympic games.
Based on IAB’s recent email survey of 200 buy-side ad investment decision-makers, primarily at brands and agencies, nearly all channels are expected to post higher growth rates YoY.
Yes, even linear TV is now expected to grow 4.3%, but nine other channels are expected to grow at even faster rates:
Connected TV (CTV) by 18.4%.
Social media by 16.3%.
Paid search by 13.1%.
Podcasts by 12.6%.
Digital video excluding CTV by 12.5%.
Digital out-of-home (OOH) by 8.9%.
Digital audio, excluding podcasts, by 8.3%.
Digital display by 7.4%.
Gaming by 5.1%.
Why Is Retail Media Expected To Continue Growing?
Buyers – particularly in the consumer-packed goods (CPG) and the beauty categories – are set to surge in the U.S. this year, pushing overall retail media ad spending to reach one-fifth of the total 2024 ad spend.
Okay, these are the reasons to spring forward, even if we’re on the verge of fall. But there are a couple of challenges that digital marketers still face.
For example, there’s been a decline in focus on new ad KPIs (e.g., attention metrics, weighted CAC, etc.), which suggests there’s been a renewed interest in refining and leveraging established metrics to achieve cross-funnel goals.
So, figuring out how to use Google Analytics 4 (GA4) to measure business outcomes instead of marketing outputs remains “the road less traveled.”
Understanding Evolving Consumer Habits Is A Growing Concern
While economic worries have faded, the concern over executing cross-channel media measurement has risen.
The resilient economy, marked by a 2.3% rise in consumer spending in Q2 2024, has eased buyers’ concerns.
But, as media convergence gains traction, cross-channel measurement remains a top priority, especially for large advertisers that spend over $50 million annually.
Other concerns, like managing reach and frequency across screens and channels, as well as media inflation, have remained flat.
Understanding evolving consumer habits is a growing concern – and is keeping significantly more buyers up at night than it did last year.
It does seem like it’s time to spring forward in the media and marketing industries, although this has traditionally been the season when digital marketers prepare to fall back.
Pay-per-click (PPC) advertising remains a cornerstone of effective digital marketing strategies.
Often, when we begin work on a PPC account or campaign, it comes with some history.
Whether it’s because we inherited it or have been asked to conduct an audit, the goal is always the same: to look at it with fresh new eyes, making use of our expertise and hard-earned skills.
We need to make sense of it to fix issues and improve performance.
In my original post dated October 2021, I highlighted seven key areas to optimize in order to improve PPC campaign performance.
But as we move through 2024, the advent of AI tools and intelligence has significantly disrupted the landscape, necessitating continuous refinement and adaptation.
Additionally, the proliferation of privacy regulations has profoundly impacted data collection and insights gathering.
By leveraging the latest tools and insights, you can ensure your campaigns are optimized for maximum impact and return on investment.
Nine Key Areas For Improving PPC Campaign Performance
1. Performance By Location
One often overlooked but obvious way to segment the performance by audience is to look at where your existing and prospecting customers are located.
Screenshot from Google Ads, July 2024
You will likely see patterns for different states, regions, and even postal codes.
This seems to be quite obvious if we consider that demographics can be entirely different from place to place.
By segmenting your audience based on geographical data, you can tailor your campaigns to target specific areas more effectively. For instance, higher transaction values in affluent suburbs may justify increased spending to acquire those customers.
Ensure your campaign settings reflect these nuances to optimize performance.
2. Performance By Device
It’s a given. Despite the increasing convergence between experiences on different platforms and devices, user behavior can vary significantly across different devices.
While mobile continues to dominate traffic, desktop often leads in conversions for many industries.
It’s not just a matter of screen size and resolution, but also about context and the reasons why we use a device instead of another.
It’s crucial to regularly review device performance data to better understand your audience and the context in which they operate. This understanding allows you to align your messaging and user experience accordingly.
Furthermore, aligning this data with other marketing channels can enhance the overall effectiveness of your campaigns.
3. Performance By Network (Search Vs. Search Partners Vs. Display)
Targeting the right network can significantly impact your campaign’s success.
We could argue at length about the quality of impressions and clicks from partners’ websites. But most of the time, these generate such a small amount of traffic that in the wider context of an account, the spend can be negligible.
Screenshot from Google Ads, July 2024
And considering that there is no way to target Search Partners alone, whether we keep the Search Partners on or off is a different matter.
However, that cannot be said for the Display Network — you should always split Search and Display campaigns.
While Search Network delivers high-intent traffic, Display Network excels in brand awareness, and while the end of third-party cookies and a cookieless future are upon us mean that personalized and targeted ads will be more limited, we are likely to see a revival of contextual advertising.
But even when highly targeted, display ads are a form of disruption of the user experience, and therefore we must always acknowledge that in our creative and messaging.
Additionally, we should likely use the two networks to target customers and prospects at different stages of their user journey and have different strategies, KPIs, and targets aligned to that.
4. Audience Performance
Often, we see search driving a significant amount of traffic from existing customers who use the engines to quickly “navigate” to a website to access their account.
If appropriate measures are not in place, these navigational clicks can be quite costly when they come from PPC ads.
Add suppression lists to avoid (where possible) incurring any extra costs that won’t drive additional conversions.
Per my previous point, the third-party cookie ban will limit your ability to target specific audience members and personalized ads, including retargeting.
So other logical uses of audience targeting include the segmentation of the user base (first-party data) into cohorts based on a shared attribute or identifier, and therefore defined by behavior (i.e., page visitors), and/or engagement (high consumption of content).
With the growing importance of first-party data due to privacy regulations, nurturing customer lists is crucial.
Screenshot from Google Ads, July 2024
But audiences can also be used for observation rather than targeting, as in the above example.
Since these won’t affect the campaigns’ performance, it is strongly suggested that as many relevant audiences as possible be added.
Once the data is collected, it will provide valuable insights into which segments are most valuable and which audiences are underperforming. This will enable you to make the right adjustments.
5. Negatives And Negative Lists
Keywords are still the strongest signal. But due to the complexity of natural language and the different (often unique) ways people search, even with the most sophisticated machine learning, machines can still struggle to fully understand the intent.
Therefore, it’s as important as ever to narrow down the chances that keywords might match unwanted search queries. You must continually review and mine the search query data available.
Even with the current limitations, search query reports can really help you understand what Google thinks a website or a page is about.
At a time when Google is encouraging advertisers to move to using more broad match and keyword themes, this can help reduce costs for unwanted, less relevant searches and exclude terms that don’t align with your campaign goals.
This ongoing process also helps improve your quality score and overall campaign efficiency.
6. Features Available (And Applicable To The Account/Campaign) In The Platform
Continuing from the point above, one of the reasons to use additional features like the ad extensions is the benefit these can have on the quality score.
It goes without saying that QS alone should be a compelling enough reason.
Additionally, considering that ad listings on search engines can be quite expensive, wouldn’t it make sense to try to always maximize the on-page real estate?
If we are paying a large amount of money to be there, we want to ensure it’s worth it. Besides, the more space we can take, the less will be available for competitors and other advertisers!
Additional features also include less-used options, such as the capability to upload offline conversions (more on that in a moment) or run experiments and A/B testing.
With the push for automation by platform owners, manual adjustments are becoming more limited.
Leveraging machine learning and AI for actionable insights and optimization options is now more critical than ever.
7. Conversion Tracking
Accurate conversion tracking is the bedrock of effective PPC campaigns – and this is one of my favorites – and it’s essential that we are tracking the right goals.
In digital marketing, everything should be measurable, and marketers should be accountable for the performance of their advertising campaigns. Conversion tracking should always be at the cornerstone of planning and executing media buying.
However, we often see examples of PPC accounts and campaigns that are either missing conversion tracking altogether or are tracking the wrong endpoints.
Provided we have our conversions firing and recording correctly, some expert tips are to:
Use the segmentation option from within Google Ads to easily and quickly see a breakdown of the conversion types by campaign (see example below). In fact, the segmentation view is an extremely useful, yet massively underrated, tool!
Screenshot from Google Ads, July 2024
Set the right conversion goal(s) for each campaign when using Target cost per action (CPA) or Target return on ad spend (ROAS) bid strategies.
Set up and make use of custom columns to add the different conversion points and/or performance metrics such as CPA, return on investment (ROI) or ROAS.
Besides, the importance of conversion data has increased exponentially as it informs machine-driven optimization, so importing offline conversions and using enhanced conversions are now essential practices.
8. The Role Of Automation And AI
The role of the marketer has evolved significantly with the advent of AI and automation.
It’s now crucial to maximize the effectiveness of these technologies.
Automated systems can mine and provide actionable insights from vast amounts of data, which manual methods cannot match; only understanding and leveraging these capabilities will help marketers stay ahead.
9. First-Party Data and Privacy Regulations
We probably cannot stress enough about this; with increasing privacy regulations, third-party data is becoming less reliable, so nurturing first-party data has never been more important.
Building and maintaining comprehensive customer lists in full transparency allows for targeting with greater accuracy and personalization while ensuring compliance with privacy laws and campaign effectiveness.
Conclusion
In the dynamic world of PPC advertising, continuous improvement is key.
By regularly updating and refining your strategies across (some of) these nine areas, you can achieve sustained success and drive better results for your campaigns.
Back in 2021, my recommendation was to embrace the Pareto Principle and focus on where you can make a difference right away:
“Look for those campaigns and terms that are responsible for the majority of the ad spend.
It is likely that 20% of those are accountable for 80% of your outgoing costs.
If those campaigns or keywords are hitting your targets, improving their performance might really help you to take things to the next level and become the company CFO’s best friend.”
Now I still think your job is to focus on the 20%, but the grunt work, the 80% is likely to be best left to the machines.
The advent of AI tools and the push for automation have transformed the role of marketers, making it essential to leverage these technologies effectively, while privacy regulations underscore the importance of first-party data.
Like never before, it is important to stay informed about the latest tools and trends and not hesitate to adapt the approach to meet the evolving needs of your audience.
Key Takeaways for 2024:
Prioritize data-driven decisions by leveraging the latest performance insights.
Regularly update and refine your strategies to stay ahead of the competition.
Utilize the full range of available features and tools to maximize campaign effectiveness.
Adapt to the evolving role of automation and AI in PPC advertising.
Focus on first-party data to navigate the challenges posed by privacy regulations.
Google has announced a new update to its Local Services Ads (LSA) platform, implementing an automated photo selection feature.
Ginny Marvin, Google Ads Liaison, revealed that the company will now choose photos from advertisers’ LSA profiles to display in their ads.
Local Services advertisers: Starting today, we’ll begin selecting photos from your LSA profile to show in your ads. Photos will be selected based on their likelihood to increase engagement with your ad.
Some things to note with this update: •Adding photos to your Local…
According to the announcement, this change is designed to increase ad engagement. The selection process will be based on an image’s perceived likelihood of improving user interaction with the advertisement.
Key Points of the Update:
Photo inclusion may affect ad ranking
Google recommends uploading 3-5 images to LSA profiles
Photos should be high-quality, relevant, and original
Not all ads will consistently include photos
Impact On Advertisers
This update introduces a new variable for Local Services advertisers to consider.
While Google suggests that adding photos could improve ad rankings, the actual impact remains to be seen.
Advertisers may need to reassess their visual content strategies in light of this change.
Photo Requirements & Recommendations
Google says photos must be high quality, relevant to the advertiser’s work, and original.
The company explicitly states that copied or stolen images are not permitted. Advertisers can manage their photos through the Profile and Budget page in their LSA dashboard.
Variable Photo Display
It’s important to note that photo inclusion in ads is not guaranteed. Google states that ad appearance will vary depending on user queries and other unspecified factors.
This variability may present challenges for advertisers seeking to control their ad presentation consistently.
As this feature rolls out, local service providers using Google’s advertising platform must monitor its effects on their ad performance and adjust their strategies accordingly.
How This Can Help You
This LSA update matters for digital marketers and local businesses.
It changes how visuals impact local service ads, potentially shaking up ad performance and user engagement.
What it means for LSA advertisers:
Better visibility: Good photos could boost your ad placement.
More clicks: Eye-catching visuals might up your CTR.
Edge over competitors: Quick adapters could get ahead.
Time-saver: No more manual image selection headaches.
What it means for marketers and agencies:
New optimization angles: Fresh ways to tweak LSA campaigns.
Added value for clients: Guide them on nailing their LSA imagery.
Data insights: Track how this change impacts performance metrics.
Keep a close eye on your LSA performance and be ready to pivot. Savvy marketers can turn this update into a win for their local ad game.
Getting Google Ads Certified is a great way to demonstrate a baseline learning effort and level of exposure to PPC and managing Google Ads.
Whether you’re coming out of school, entering a career that involves Google Ads, or simply want to learn, it is a great place to get started.
Some employees may list it as a minimum requirement on applications. Others will include it in onboarding and training. It can be a great place to start your own self-guided journey in less corporate environments or if you’re doing your own work to learn and level up.
Additionally, many agencies and organizations are part of the Google Partners program. Google Partners often must meet certain standards, such as maintaining different levels of badges or credentials across their teams.
One requirement is to have a certain number of connected accounts (strategists) certified, with certain numbers or minimums that need to be met in specific specialty areas (more on these later).
This article is about the individual certification (for professionals), so just note that it is important to make sure things get linked up properly with your company if you were asked to become certified for your company’s Google Partner program.
What Is Google Ads Certification?
Google Ads certification is a process by which Google recognizes marketers as experts in online advertising.
After passing Ads certification exams, individuals get a personalized certificate and – if affiliated with a company – can contribute to the company’s Google Partner credentials.
There have been a tremendous number of changes in Google Ads.
Google has increased the number of certification exam topics over the past couple of years, but in some cases, the rapid pace of Google’s platform changes hasn’t been maintained in the learning and exam content.
If you’re interested in learning more or taking your own steps toward Google Ads Certification – regardless of the reason or motivation – check out the four steps to work through the process and be prepared to dedicate some time to working through them.
How To Earn Your Google Ads Certification
Step 1: Get Started In Skillshop
Navigate to the Google Ads Certification platform within Skillshop.
In the top right corner, click Log In.
Now, we’re at a critical step right away. We want to ensure that the account you get certified through is the specific one you want to be certified. If this is your first time using Google’s Skillshop, you must create a new account.
Please read to the end of the details for this step before you start filling out the forms and taking any account linking steps.
Please note that if you have an existing account, you may still be required to do some new account linking or migration based on Google’s migration from skillshop.exceedlms.com to skillshop.docebosaas.com.
If you work for an agency or a company, you will likely be required to use your work email address.
Regardless of agency, corporate, or whatever status, you likely want to link your certification to the address you manage Google Ads to keep things simple and clean.
If you haven’t managed Google Ads yet and don’t have an account, you can easily create one here to get started.
If you’re a returning user, be careful to find your Skillshop profile and ensure your Google account is still properly linked so you don’t accidentally take exams in a new account versus recertifying your current account.
Again, you may have to perform additional linking and verification steps based on the migration of systems on Google’s end. Be mindful of that.
The account management piece can be confusing and frustrating as there are separate profiles yet linked accounts between this system and Google’s accounts and Ad management systems.
If you’re interested in having your certification count toward a Google Partners badge, be sure to link things properly using the company email address you use for managing ads for your Google Partner company.
If you’re interested, I encourage you to learn more about the Google Partners program details, requirements, and logistics for getting set up.
Please note that the certifications you need to be counted for Google Partners are more narrow and specific than those you need to be a certified Google Ads Professional.
Step 2: Select Your Exam
If needed, navigate back through Skillshop to the Google Ads Certifications again to arrive at the page with the list of exam topics.
You’ll find an intro page that provides background information to help you determine which certification is right for you and different categories or exam tiers as Google recommends.
Here, you can find the specific certification you want to start with and click on it.
Within the specific certification, read the overview info.
When you’re ready to dive in, click the Get Started button.
Step 3: Prepare For Exams
Google provides both basic educational info and more extensive training content.
The specific Google Ads certifications include:
AI-Powered Performance Ads Certification.
AI-Powered Shopping Ads Certification.
Google Ads – Measurement Certification.
Google Ads Apps Certification.
Google Ads Creative Certification.
Google Ads Display Certification.
Google Ads Search Certification.
Google Ads Video Certification.
Grow Offline Sales Certification.
If you’re brand new to Ads and the certification exams, I recommend starting with the Google Ads Search Certification.
Search ads are one of the fundamental and traditional types of ads from the Google Ads platform.
But if you are more focused on something like just shopping, then start there.
Or, if you’re brand new and are most interested in the newer AI-powered ads and functionality, skip right to that one, but know that you might need a little more training and ramp-up time to understand the AI aspects on top of some traditional concepts.
Training content is available and tied to each of the specific certifications.
When you click on any of them, you’ll have options to get started, including a quick knowledge assessment and other resources.
Screenshot from skillshop.docebosaas.com, June 2024
You’ll need to plan on investing at least a few hours to go through the training content specialization.
If you’ve been managing Ads campaigns or have deeper exposure, it’s still a good idea to go through the modules – even if you do it faster.
The sample questions are quite helpful; they are written in the same format as they appear on the actual exams.
This is especially important to note as with some of the recent rapid changes and features that have been rolled out into Google Ads, some of the exam content might be slightly (or more) dated than what you’re used to seeing in the platform on a daily basis.
Unless you have previously been certified and/or have moderate Ads experience, don’t skip the training content!
Step 4: Pass The Assessment
To become certified, you must pass the assessment in any of the respective certification specialties by achieving at least a minimum percentage of correct answers within the time allotted for the exam.
Note that you cannot pause the timer, so be sure that you’re able to dedicate the time required and can remove interruptions.
Your certification will then be awarded for that specific product focus area.
You can stop with one specialization or continue by going through additional specializations until you have mastered and achieved all of those relevant to your desired credentials.
If you’re an overachiever or love standardized tests, there’s nothing that says you can’t take them all.
Note that if you fail to pass an exam, you must wait one day before retaking that specific assessment again. That’s the only real penalty for not passing.
For all assessments you pass, which give you certifications, you will receive an email confirming your status at minimum. In the past, there have been badges and certificates to publicly display and download.
As things continue to change, though, I recommend keeping a digital record of your certifications. You can always go back into the dashboard to help show or prove that you passed and are certified if necessary.
The Google Ads Platform Is Ever-Changing
Whether you’re new to paid search ads through Google or have been managing ads for years and are just now exploring certification, I encourage you to spend some time with the steps I unpacked and see if you feel like it will be a worthwhile investment in your learning and personal credentialing.
As I mentioned earlier, be patient and know that there might be some disconnects between what you see in the exams versus in the platform itself as things are changing at a rapid pace with new features, interfaces, and ways that Google Ads works.
Regardless of your certification status, I want to encourage you on your journey with Google Ads and wish you happy and profitable days ahead for your business or organization!